Energy Secretary Chris Huhne’s announcement of a comprehensive review of the Feed-In Tariffs Scheme is a lobbying success for the NFU’s policy on farm-based anaerobic digester plants but needs to be resolved quickly.

The NFU says there is a major cause for concern where solar photovoltaic (PV) plants are concerned as well as damaging uncertainty over investment in a much wider range of farm-based renewables. The NFU does not believe there is a threat that solar farms will take up a disproportionate amount of FITs support or that they will occupy more than a tiny fraction of national or regional land area.

NFU chief renewable energy adviser Dr Jonathan Scurlock said: “The NFU is deeply concerned that all solar PV projects above 50 kilowatts are to be included in the FITs review – this will include many agricultural rooftop projects involving as little as £150,000 investment. It is imperative that the government announces its timetable for any proposed changes, and the transitional rules that will apply – in order to avoid a collapse in confidence among investors. This hardly seems like the right way to reward the success that the FITs had achieved so far, in bringing new sources of investment into land-based renewables. Alongside the domestic scale, agricultural, industrial and community renewable schemes have a vital role to play in green growth.”

While the NFU supports the Government announcement of a fast-track review of renewable electricity FITs for farm-based anaerobic digester (AD) plants, it wants a clear timetable to be set out so projects already in development are not stalled.

Dr Scurlock added: “We are keen that any policy is evidence-based and that farm-based biogas plants help to deliver low-carbon energy, avoid methane emissions from slurry storage and encourage good nutrient management.

“Improved feed-in tariffs for farm-based AD will help to solve many of the outstanding issues for the farm and rural sector contained within the development of the current AD Strategy. However, the devil will be in the detail, such as whether projects now under development will be stalled pending the introduction of a new tariff regime. We call upon the government to backdate any FITs uplift to February, since only a few on-farm AD projects have actually progressed to date.

“Farmers are ready and willing to contribute to national energy security and job creation in the low-carbon economy. NFU members and their development partners have started to invest in projects on the basis of existing Government policy. However, the government’s willingness to move the goalposts again and again undermines investor confidence in the whole range of renewable energy incentives – whether for clean electricity, heat or transport fuels. The message this sends to all future investors in green energy is extremely damaging.”